Buying a property is one of the best ways to invest and gain extra income on the side. Most especially if it is an area with good capital value growth.
If you are looking at growing your income significantly, then perhaps investing in a property might be for you. Doing so can help you increase your wealth, and at the same time, secure your financial future. In investment property, you can get your return on investment in three ways—through rental income, reselling the property, or can be both. It really depends on your goal—if you intend to keep it for the long run or renovate and sell it at a higher price. Either way, here are a few tips on how you can choose and maximize your property investment for additional income.
Easy access to important establishments and transport system
One of the most important factors to consider in property investment is its accessibility to good transportation such as jeepney or bus, train, and even main roads if you travel by car. Next, is its proximity to important and public establishments such as schools, malls, police and fire station and whatnot. So, if you are looking to buy a real estate property to have it rented out to a family, then having a good school nearby is important.
Be on the lookout for areas with good growth for capital value
Investing in a property is a big responsibility because you are putting your hard-earned money into something that will require a significant amount. Moreover, appreciation varies. Therefore, you must make sure that you are investing in a property that has good capital value growth to ensure a good return on investment.
Check the facilities, amenities, and security
Nowadays, one of the selling points of a property is its facilities, amenities, and good security. There has been an increase in buying real estate properties, particularly condominiums, because it is accessible and promotes a better lifestyle. Condominiums now have swimming pools, fitness and recreation areas, and parks. All that, plus better security 24 hours a day, 7 times a week, which some neighborhoods lack.
Consider low-maintenance properties
Sure, a house with a nice pool and lush gardens sounds very appealing, but it can also be difficult to maintain. Not only will you think about having someone to care for the property, but you will also have to pay for the maintenance cost, which can decrease your profits. Why not choose a similar home, without a pool, or perhaps a smaller one, and a grassed backyard instead.
Suit you or your tenant’s needs and wants
Selling or renting your property out, whichever you prefer, it is important to consider the needs and wants of whoever will occupy the space. Choose a property type which will be appealing to the people who are living in the area. For example, a condominium at the heart of a university area. Now you may think a 2-bedroom may be a good investment, but if you are planning to rent it out, then perhaps studio units may appeal more to them since most of the people in that area are students.
Check the market for the best price
If you are serious about property investment, then it is best to check the market for the best price within an area you are interested in. A little research and checking won’t hurt. Instead, it will even give you the best price for the property. Moreover, don’t be afraid to negotiate. Think about how much you can save on top of what you can earn in the future.
Properly advertised on various platforms
Whether you are selling or having your property rented out, it is important to make the most out of various platforms to promote your property. Before, you can only list your property in real estate portals. But nowadays, you can post a property listing on Facebook and Instagram and have it advertised at the same time, for more audience exposure. The more people see your listing, the higher the chances of getting your property sold or rented out.
Investment property is a good way to earn extra income on the side, whether it is for commercial or residential use. It is even better than having your money inside a bank with a much lower annual interest. In real estate, for example, preselling units are sold at a lower price. Then as time goes by, it appreciates. It will depend, however, on the type of the property and where it is located. If it is in the city, the property may be a little higher than in suburbs, but it can double or even triple the value of the property, especially if it is all ready for occupancy.